Shenzhen Stock Exchange: Adding a fourth set of standards will help expand the coverage of the Growth Enterprise Board and further enhance market attractiveness.

Recently, the Shenzhen Stock Exchange (SZSE) announced the first batch of supporting business rules for deepening the reform of the ChiNext board and solicited opinions from the public. When answering questions from reporters, the SZSE stated that the fourth set of listing standards has set high market value requirements to screen out enterprises with high market recognition. The business revenue index can measure a company's commercialization level, with a threshold of 200 million yuan requiring companies to have a certain scale, which also conforms to the development laws of early growth-stage innovative entrepreneurial enterprises. By introducing the fourth set of standards, the coverage of the ChiNext board listing standards system becomes broader, more inclusive, and the market attractiveness will be further enhanced. In particular, the first category uses a combination of "expected market value + business revenue + compound revenue growth rate" to emphasize growth, mainly targeting high-quality innovative entrepreneurial enterprises in emerging industries, which can adapt to their fast growth rate and relatively low market value characteristics. The second category uses a combination of "expected market value + business revenue + research and development investment" to introduce a research and development investment index that reflects innovation, mainly targeting high-quality innovative entrepreneurial enterprises in future industries, which can adapt to their outstanding innovation capability and lower revenue starting point. Regarding the new stock issuance pricing mechanism, further optimizations were made to the placement arrangements and strategic placement mechanism. On one hand, a agreed lock-up method was added to guide "long-term and strategic investments" and promote reasonable pricing. On the other hand, the proportion of strategic placement for small and medium-sized stocks was increased. For small and medium-sized stocks with an initial public offering of less than 100 million shares or between 100 million and 400 million shares, the upper limit of the strategic placement ratio was adjusted from not exceeding 20% and 30% to not exceeding 30% and 40%, respectively. The above are excerpts from an article on the deepening of the reform of the ChiNext board taken from the SZSE official website.